S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7716
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               May 20, 2021
                                ___________
 
 Introduced  by  M. of A. CYMBROWITZ -- (at request of the New York State
   Homes and Community Renewal) -- read once and referred to the  Commit-
   tee on Housing
 
 AN  ACT to amend the private housing finance law, in relation to author-
   izing powers of the housing trust fund corporation, and specifying the
   scope of eligible purchasers of the housing finance agency and the New
   York city housing development corporation bonds
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subdivision  1  of  section  1102  of the private housing
 finance law, as amended by chapter 199 of the laws of 2008,  is  amended
 to read as follows:
   1.  Within  the  limit  of  funds  available in the housing trust fund
 account, the corporation is hereby authorized to  enter  into  contracts
 with  eligible applicants for the furnishing by such applicants of hous-
 ing for persons of low income. Each such  contract  shall  provide  that
 eligible  applicants  rehabilitate  or construct one or more projects or
 convert one  or  more  nonresidential  properties.  Such  contracts  may
 provide  for payments, grants or loans by the corporation for the activ-
 ities to be carried out by the eligible applicant  under  the  contract.
 Such  contracts  shall  provide  that a private developer make an equity
 investment of the greater of (i) two and  one-half  percent  of  project
 costs  or (ii) five percent of project costs less grants which are to be
 applied to such costs. The foregoing shall not preclude a private devel-
 oper from making a greater equity investment. Any  payments,  grants  or
 loans made by the corporation outstanding at the time of resale shall be
 subject  to  repayment in whole or in part upon resale after termination
 of the regulatory period and as otherwise provided therein. Such  repay-
 ment  provisions  may  survive  the  end  of the regulatory period. Such
 contracts may provide that eligible applicants shall either (a)  perform
 activities  specified under the contract themselves or (b) act as admin-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

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 istrators of  a  program  under  which  projects  are  rehabilitated  or
 constructed or nonresidential properties are converted by other eligible
 applicants  or (c) perform both such functions. In the case of a munici-
 pality  acting  as an administrator, funds provided to such municipality
 hereunder shall not be deemed to be municipal funds.    The  corporation
 shall  refer  any  request for payments, grants or loans from persons of
 low income to eligible applicants in the  area  in  which  such  persons
 reside. Loans may be in the form of participation in loans including but
 not  limited to participation in loans originated or financed by lending
 institutions as defined in section forty-two of this chapter, the  state
 of  New  York  mortgage  agency,  the  New York city housing development
 corporation, the New York state housing finance  agency  or  private  or
 public  employee  pension  funds. Notwithstanding any other provision of
 law, payments, grants and loans may  be  deposited  by  the  corporation
 directly  with  a  lending  institution at or before the time of initial
 loan closing pursuant to an escrow agreement satisfactory to the  corpo-
 ration. Payments, grants and loans shall be on such terms and conditions
 as  the  corporation, or the eligible applicant with the approval of the
 corporation, as the case may be, shall determine. Payments,  grants  and
 loans shall be used to pay for the actual and necessary cost of acquisi-
 tion, construction, rehabilitation or conversion, provided that not more
 than  fifty  percent of such payments, grants and loans received for the
 rehabilitation, construction or conversion of a project may be used  for
 the  cost  of the project's acquisition and not more than ten percent of
 such payments, grants and loans may  be  used  for  the  rehabilitation,
 construction or conversion of community service facilities and, provided
 further,  that  payments,  grants or loans shall not be used for (i) the
 administrative costs  of  an  eligible  applicant  except  as  otherwise
 authorized  by  law,  (ii)  the  cost  of the acquisition, construction,
 conversion or rehabilitation of residential units which,  subsequent  to
 such  acquisition, construction, conversion or rehabilitation, are to be
 occupied by persons other than persons of low income, and (iii) the cost
 of the acquisition, construction, conversion or rehabilitation of  units
 which, subsequent to such acquisition, construction, conversion or reha-
 bilitation,  are  occupied  or to be occupied for other than residential
 purposes, except for community service facilities as described above. No
 such payments, grants or loans shall exceed a total of one hundred twen-
 ty-five thousand dollars per  dwelling  unit.  Among  the  criteria  the
 corporation  shall consider in determining whether to provide additional
 funds are: average cost of construction in the  area,  location  of  the
 project and the impact of the additional funding on the affordability of
 the  project  for  the occupants of such project. The length of any loan
 provided under this article shall not exceed [thirty]  FORTY  years.  No
 more  than  fifty  percent  of  the total amount originally appropriated
 pursuant to this article in  any  fiscal  year  shall  be  allocated  to
 projects   located   within  any  single  municipality.  Of  the  amount
 originally appropriated to the corporation in any fiscal year,  no  more
 than  thirty-three  and  one-third percent shall be allocated to private
 developers for projects within a city with a population of  one  million
 or more. Of the amount originally appropriated to the corporation in any
 fiscal  year,  no  more than thirty-three and one-third percent shall be
 allocated to private developers for projects in the area outside  cities
 with a population of one million or more.
   §  2.  Paragraph  3  of  subdivision 29-a of section 44 of the private
 housing finance law, as amended by chapter 575 of the laws of  2011,  is
 amended to read as follows:

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   (3)  The  powers  granted by this subdivision may be exercised only if
 (a) obligations of the agency have been issued to fund the loan made  or
 purchased by the agency and such obligations have received an investment
 grade  rating  from  a  recognized  rating  agency; (b) the loan made or
 purchased by the agency is fully secured as to principal and interest by
 insurance  or  a  commitment  to  insure issued by the state of New York
 mortgage agency or by the general credit of a bank, national bank, trust
 company, savings bank, savings and loan association, insurance  company,
 governmental agency of the United States, or any combination thereof; or
 (c)  obligations  of  the agency are purchased by a bank, national bank,
 trust company, savings bank, savings  and  loan  association,  insurance
 company, governmental agency of the United States, WHICH FOR PURPOSES OF
 THIS  SUBDIVISION,  INCLUDE  THE FEDERAL HOME LOAN MORTGAGE CORPORATION,
 THE FEDERAL NATIONAL MORTGAGE  ASSOCIATION,  THE  GOVERNMENTAL  NATIONAL
 MORTGAGE  ASSOCIATION,  AND ANY SUCCESSOR OF THE FOREGOING, or any whol-
 ly-owned subsidiary or combination thereof.
   § 3. Paragraph 3 of subdivision 23-c of section  654  of  the  private
 housing  finance  law, as amended by chapter 575 of the laws of 2011, is
 amended to read as follows:
   (3) The powers granted by this subdivision may be  exercised  only  if
 (a)  obligations  of  the  corporation have been issued to fund the loan
 made or purchased by the corporation and such obligations have  received
 an investment grade rating from a recognized rating agency; (b) the loan
 made  or  purchased  by the corporation is fully secured as to principal
 and interest by insurance or a commitment to insure by the state of  New
 York  mortgage  agency  or  New York city residential mortgage insurance
 corporation or by the general credit of a  bank,  national  bank,  trust
 company,  savings bank, savings and loan association, insurance company,
 governmental agency of the United States, or any combination thereof; or
 (c) obligations of the corporation are purchased  by  a  bank,  national
 bank,  trust company, savings bank, savings and loan association, insur-
 ance company, governmental  agency  of  the  United  States,  WHICH  FOR
 PURPOSES  OF  THIS  SUBDIVISION,  INCLUDE THE FEDERAL HOME LOAN MORTGAGE
 CORPORATION, THE FEDERAL NATIONAL MORTGAGE ASSOCIATION, THE GOVERNMENTAL
 NATIONAL MORTGAGE ASSOCIATION, AND ANY SUCCESSOR OF  THE  FOREGOING,  or
 any wholly-owned subsidiary or combination thereof.
   §  4.  This act shall take effect immediately; provided, however, that
 the amendments to subdivision 29-a of section 44 and subdivision 23-c of
 section 654 of the private housing finance law made by sections two  and
 three  of  this act shall not affect the repeal of such subdivisions and
 shall be deemed to be repealed therewith.